Northern New Jersey Office Market Report

Leasing activity grows as firms refine their long-term space needs. The market’s office vacancy is set to tighten further in 2025 following last year’s decline — the first subsequent to 2019. Tenants were drawn to cost-effective suburban properties in Bergen and Morris counties in 2024, fueling the strongest Class B/C net absorption since before the pandemic. Major 2025 commitments, like Sanofi’s 260,000-square-foot build-to-suit office in Morristown and Samsung’s relocation to a larger facility in Englewood Cliffs, should sustain this momentum. In Jersey City, large renewals by Fidelity and Amazon, coupled with rising demand for premium office space, helped Hudson County achieve its strongest Class A net absorption since 2015. Leasing here should remain strong in 2025, driven by emerging lifestyle brands and tech firms securing 15,000-square-foot spaces, along with expanding legal tenants. Demand along the Hudson River may also rise if New York’s congestion toll stays in place, prompting some firms to relocate, aided by New Jersey’s $500,000 incentive for companies establishing satellite offices in the state.